Muscat: Oman Air and Oman Airports made a powerful statement of unity and ambition as they revealed a range of transformative accomplishments and forward-thinking strategies at a prominent press conference in Muscat on Wednesday. This event highlighted their collective aim for a financially viable and internationally competitive aviation industry.
Under the esteemed patronage of Eng. Said bin Hamoud Al Maawali, the Minister of Transport, Communications, and Information Technology, as well as the Chairman of both organizations, the conference emphasized significant milestones for 2024 while introducing ambitious reforms intended to reshape the aviation framework of the Sultanate.
During his address, Eng. Al Maawali emphasized the strategic partnership between Oman Air and Oman Airports, referring to it as a prime example of national coherence that aligns with Oman Vision 2040.
"This collaborative vision extends beyond mere business reform; it seeks to establish Oman as a viable and competitive aviation center," he remarked.
The event drew attendance from high-ranking officials, including Con Korfiatis, the CEO of Oman Air, and Hamood bin Musbah Al Alawi, the Acting CEO of Oman Airports, along with representatives from government agencies, media, and key partners.
Oman Air showed significant progress in its first year of comprehensive transformation. Key financial indicators revealed a 51% increase in EBITDA year-on-year, despite facing legacy financing expenses of OMR85 million.
The national airline served over 5. 4 million passengers in 2024 and reported about 19. 4 billion Available Seat Kilometres (ASK), with point-to-point traffic rising to 40%, a notable increase from 27% in 2019.
Implementing a rightsizing initiative, the airline decreased its expatriate workforce by 487, raised Omanisation from 74. 8% to 79. 4% since 2023, and reduced its fleet by 13 aircraft. These measures are anticipated to generate annual savings of OMR18 million.
Additionally, Oman Air successfully reassigned 74 Omanis internally, integrated 87 into the broader aviation field, and offered severance packages to 293 staff—totaling nearly OMR15 million to promote financial stability.
In terms of operations, Oman Air boasted an impressive 92% on-time performance, earning second place in the MENA region per Cirium and also ranked second globally for December 2024 according to OAG. The airline garnered prestigious international recognitions such as APEX World Class, Best in Seat Comfort (APEX), and Best Airline Staff (Skytrax). Looking forward, the airline is set to become a member of the Oneworld Alliance in June 2025.
In the first quarter of 2025, it achieved its highest passenger load to date and plans to inaugurate a new route to Amsterdam in July. The frequency for several key routes will also see an increase: flights to London will operate twice daily starting in October, while daily service to Moscow will be reinstated.
Oman Airports: Focused on digital transformation and national interests
In mid-2024, Oman Airports embarked on a digital transformation strategy designed to enhance operational efficiency and improve passenger experience. This initiative encompasses self-service baggage drop systems, sophisticated crowd management tools, and a centralized digital operations dashboard.
The operator reported its most robust EBITDA since its establishment, with an increase of 43%, and a net profit of OMR 23. 5 million, marking a 15% growth compared to the prior year. Overall group revenue reached OMR 142. 6 million, with Muscat International Airport accommodating 12. 9 million passengers, reflecting a 2% increase from 2023. Salalah Airport exceeded pre-pandemic records, surpassing its 2019 figures by 17. 3% while also witnessing a 33% rise in shareholder equity.
The Omanisation initiatives by Oman Airports were particularly remarkable. A total of 357 local citizens were hired through airport contracts, substituting expatriates, while 71 individuals from Oman Air were integrated into the workforce after the airline underwent a restructuring. Additionally, 67 Omanis were recruited to oversee the parking operations at Muscat airport following the company's decision to manage this service internally. After a local ground handling provider exited the market, Oman Airports managed to secure positions for 227 Omanis.
In spite of facing operational hurdles such as escalated emergency maintenance expenses and underused land assets, officials conveyed optimism about achieving pre-COVID passenger transit levels by 2026. This confidence is bolstered by a growing number of tourists obtaining visas and the introduction of direct flights from Europe to Salalah.
Both organizations reiterated their joint dedication to advancing sustainable development, fostering innovation, and establishing strategic collaborations that enhance Oman’s status in global aviation.
Airfares to be fixed during Khareef
In a decision positively received by travelers, Oman Air announced that it will impose a cap on airfares for the Salalah to Muscat route during the forthcoming Khareef season. This initiative aims to lower the costs of domestic air travel and stimulate inbound tourism to the Dhofar region, especially during the peak demand months of the monsoon.
